The Sri Lanka rupee opened weaker against the US dollar on Thursday, while dealers reported modest increases in government bond yields and a decline in Colombo equity indices. Market participants said the moves reflected short-term currency flows and cautious investor sentiment.
Sri Lanka rupee slips against the US dollar as key bond yields edge up and Colombo shares trade lower
The Sri Lanka rupee opened at 302.70/75 to the US dollar on Thursday, slightly weaker than the previous session’s 302.65/69, according to domestic dealers. The marginal depreciation came as bond yields firmed across select maturities and the Colombo bourse traded in negative territory.
In the domestic debt market, a government bond maturing on 15 September 2029 was quoted at 9.70/76 percent, while the 1 July 2030 paper was quoted at 9.77/85 percent. Longer-dated debt also saw a mild uptick: a bond maturing on 15 December 2032 was quoted at 10.50/68 percent, up from prior quotes of 10.50/55 percent. Dealers described the shifts as incremental rather than structural, reflecting day-to-day liquidity conditions and investor re-pricing.
Telegraphic transfer rates showed a spread between bank buying and selling rates for major currencies. The American dollar recorded a buying rate of 299.1000 and a selling rate of 306.1000. The British pound traded at 400.0864 buying and 411.4482 selling, while the euro was at 345.9139 buying and 357.2771 selling. These TT rates underline the ongoing demand-supply dynamics that are influencing the Sri Lanka rupee in the foreign-exchange market.
Equities mirrored the cautious sentiment across markets. The Colombo Stock Exchange’s All Share Price Index (ASPI) was down 0.21 percent, falling 46.29 points to 22,144, while the S&P SL20 slipped 0.26 percent, or 15.82 points, to 6,179. Market analysts noted that the declines were broad-based and consistent with the modest tightening in fixed-income yields and the small currency move.
Looking ahead, dealers said the near-term outlook for the Sri Lanka rupee will be determined by factors such as foreign-exchange inflows, government financing activity and global risk appetite. For now, the market reaction is measured: currency and bond changes are incremental, and market participants remain watchful for catalysts that could drive sharper moves.